Thursday, 17 November 2011

Had a buy signal shaping up for 16:26 however my indicator formed a further low at the same level, deferring the signal to 16:30, by this time the market had rallied 9 points from the low therefore I opted to pass on it, the probability for a further 10 point rally on a downtrend day appeared remote. As the market rallied just over 5 points above the signal point before selling off, it'd have resulted in a breakeven trade.

Buy signal at 17:45, filled at 2264.75, market ralled up to 2269.50, moved stop to 2264.50. This signal came just following a 15 minute, 28 point drop in the NASDAQ, I was looking for a very sharp short covering rally, but it didn't happen, market sold off down to 2258.75 on the next move down, taking me out 2264.5 for a 0.25 point loss.

Buy signal spanned several days;
A nice clean buy signal this time.

Entry and exit;

In hindsight although the buy was 4 minutes after the low of the day, the market didn't stage any meaningful rally.